Bulten’s Q4 report 2019

Strategic measures implemented, strong order bookings and an agreement for acquisition create a stronger position for 2020.

FOURTH QUARTER

• Net sales amounted to SEK 784 (747) million, an increase of 5.0% on the same period last year.
• Operating earnings (EBIT) totaled SEK 27 (48) million, equating to an operating margin of 3.5% (6.4).
• Operating earnings (EBIT) adjusted for costs attributable to relocation in China and the acquisition of PSM totaled SEK 42 (49) million, equating to an adjusted operating margin of 5.4% (6.6).
• Earnings after tax amounted to SEK 11 (30) million.
• Order bookings amounted to SEK 842 (741) million, an increase of 13.6% on the same period last year.
• Cash flow from operating activities totaled SEK 98 (60) million.
• Earnings per share were SEK 0.54 (1.50).
• Bulten entered into an agreement to acquire all shares in PSM International Holdings Limited (PSM) for a purchase price of USD 24.5 (SEK 230) million on a cash-free and debt-free basis.

JANUARY – DECEMBER

• Net sales amounted to SEK 3,093 (3,132) million, a decrease of -1.2% on the same period last year.
• Operating earnings (EBIT) totaled SEK 98 (210) million, equating to an operating margin of 3.2% (6.7).
• Operating earnings (EBIT) adjusted for costs attributable to relocation in China, restructuring in Germany and the acquisition of PSM totaled SEK 147 (211) million, equating to an adjusted operating margin of 4.8% (6.7).
• Earnings after tax amounted to SEK 55 (143) million.
• Order bookings amounted to SEK 3,103 (3,098) million, an increase of 0.2% on the same period last year.
• Cash flow from operating activities totaled SEK 207 (125) million.
• Earnings per share were SEK 2.62 (7.19).
• Net debt amounted to SEK 565 (181) million. Net debt (excluding financial leasing) totaled SEK 299 (145) million.
• The equity/assets ratio was 55.2% (64.8) at the end of the period. The equity/assets ratio (excluding financial leasing) totaled SEK 60.5% (64.8).

SIGNIFICANT EVENTS AFTER THE END OF THE REPORTING PERIOD

• The Board of Bulten AB will propose to the Annual General Meeting a dividend of SEK 4.00 (4.00) per share for 2019, divided into two payments.

CEO’S COMMENTS

“Despite continued cautious market development, Bulten’s net sales and order bookings developed well during the fourth quarter. Net sales increased by 5.0% and order bookings were up 13.6%, which indicate that deliveries of the already contracted business are now gathering momentum.

In 2019 we implemented several strategic measures. During the fourth quarter we completed the restructuring in Germany, in accordance with previous communication. This is expected to bring annual savings of approximately SEK 25 million from the 2020 calendar year. The relocation of our Chinese operation has also proceeded to plan and on November 22 we inaugurated our new production unit in Tianjin. The investment has taken our Chinese operation to a whole new level and is expected to bring further opportunities for growth. We finished the fourth quarter by entering into an agreement to acquire PSM. The acquisition broadens our customer base on growth markets in Asia and North America, while also strengthening both our production capacity and our product offering as our operations complement each other well.

Operating earnings for the quarter totaled SEK 27 million, equating to an operating margin of 3.5%. Operating earnings adjusted for costs attributable to relocation in China and the acquisition of PSM totaled SEK 42 million, equating to an adjusted operating margin of 5.4%.

All in all, 2019 was a middle year for Bulten, affected by a cautious market and initiated programs of measures. We now start off 2020 stronger and in a better position, thanks to implemented strategic measures, increased volumes from already contracted business and the agreed acquisition of PSM.”

Anders Nyström, President and CEO

Investors, analysts and media are invited to participate in the teleconference on February 6 at 15:30 CET. The report will be presented by Anders Nyström, President and CEO and Helena Wennerström, Executive Vice President and CFO via audiocast.

The presentation will be held in English and can be followed live via the link: https://tv.streamfabriken.com/bulten-q4-2019. It will also be possible to take part of the audiocast afterwards at the same address or at www.bulten.com/ir.

To participate in the teleconference, please call 5 minutes before the opening:

SE: +46856642695
UK: +443333009266
US: 18335268382

Copies of the presentation will be available at www.bulten.com/ir approximately 30 minutes before start.

Anders Nyström, President and CEO
Tel: + 46 31-734 59 00

Kamilla Oresvärd, Senior Vice President Corporate Communications
Tel: +46 70-520 59 17, e-mail: kamilla.oresvard@bulten.com

This information is information that Bulten AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 13:30 CET on February 6, 2020.

Bulten is one of the leading suppliers of fasteners to the international automotive industry. The company’s product range includes everything from customer-specific standard products to customized special fasteners. The company also provides technical development, line-feeding, logistics, material and production expertise. Bulten offers a Full Service Provider concept or parts thereof. The company was founded in 1873, has some 1,400 employees in eight countries and head office in Gothenburg. The share (BULTEN) is listed on Nasdaq Stockholm. Read more at www.bulten.com.